RWE and KKR commit £12bn to Vanguard offshore wind farms in record UK deal

RWE and the global investment firm KKR have taken a final investment decision on the Vanguard East and Vanguard West offshore wind farms. The £12 billion commitment is believed to be the largest investment of its kind in UK history.

The two projects, 50 to 80 kilometres off the Norfolk coast, are due to be operational by 2030. Between them they will have the capacity to supply the equivalent of around three million homes. They are expected to support more than 2,400 jobs across construction and operation.

Both projects won government price support in January, in the seventh Contracts for Difference allocation round. At the same time, KKR agreed to take a 50 per cent stake in each wind farm. That auction was not without controversy, with ScottishPower complaining that its ready-to-build wind farm lost out to speculative projects.

The timing is deliberate. Prime Minister Andy Burnham announced the deal as he prepared to travel to the COP31 Leaders’ Summit in Türkiye, and ministers will use it to show that Britain’s net zero push is bringing private capital and skilled jobs to industrial and coastal communities.

With the final investment decision taken, the developers are committed to building both projects. Onshore works are already well advanced, and offshore construction is set to begin in early 2027.

National Wealth Fund takes its biggest offshore wind stake

The financing includes £1 billion from the National Wealth Fund. This is the publicly owned policy bank’s largest offshore wind investment so far. The fund aims to bring more than £100 billion of finance into the UK economy, and the government says the Vanguard deal shows how public money can draw in private investment while making a return for the taxpayer.

The government has also announced a separate Energy Wealth Fund. It will be linked to future North Sea revenues and will invest in renewable and low carbon projects, starting with £2 billion.

Separately, Scottish-headquartered SSE confirmed that the latest phase of its Berwick Bank offshore wind farm, Berwick Bank B, will support 2,677 skilled jobs in manufacturing, engineering and project delivery across Scotland and the north of England. SSE has contracted Siemens Energy to make the wind turbines and substation platforms. The deal includes 130 new project delivery roles in Glasgow and Montrose.

Berwick Bank B secured a 20-year contract for 1.4GW of capacity in the same auction round. At full capacity, Berwick Bank, around 38km off Scotland’s east coast in the outer Firth of Forth, could become the world’s largest offshore wind farm. It would be able to meet more than 6 per cent of current UK electricity demand.

‘Power under British control’

Mr Burnham said: “This major investment in UK renewables is a vote of confidence for building in Britain. And it is great news for billpayers because every turbine we put up is power under British control, not at the mercy of events on the other side of the world.”

He added that the National Wealth Fund meant “public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer.”

Energy Secretary Miatta Fahnbulleh said the deal was “another vote of confidence in British homegrown, clean energy”, adding: “As the world gathers at COP31, Britain is leading from the front as a renewable energy powerhouse.”

Markus Krebber, chief executive of RWE AG, said the partnership with KKR was “delivering two of the UK’s largest offshore wind projects, strengthening domestic electricity generation.” Vincent Policard, co-head of European infrastructure at KKR, said the deal showed “how private capital can help turn the UK’s energy ambitions into reality.”

Martin Pibworth, SSE’s chief executive, called it “public-private partnership in action”. He said: “Clear political direction, matched by businesses prepared to invest, is translating into real-world investment in British jobs, skills and manufacturing.” He urged world leaders at COP31 to show “the ambition needed to turn that recognition into more investment like this.”

Rain Newton-Smith, chief executive of the CBI, said investment on this scale “can attract further private capital, create skilled jobs and support growth in communities across the country,” and would reduce Britain’s exposure to volatile international energy markets.

The announcements come a week after the Energy Independence Bill was introduced in Parliament. The government describes the bill as a down payment on reforms to put affordability at the heart of the energy system. Its measures include:

• greater public oversight of rogue operators
• stronger protections for households and businesses
• giving communities more say over, and a bigger stake in, clean energy projects built near them

Ministers have also pledged to remove standing charges and to give households £100 towards their bills this winter, following last month’s Budget decision to extend the electricity VAT cut and scrap gas standing charges.